NEW DELHI: Delhi Police have uncovered an alleged ₹3.93 crore cyber fraud involving multiple unauthorised transactions, suspected mule bank accounts, cryptocurrency conversions and hawala channels. The investigation has resulted in seven arrests, with authorities examining how the money was allegedly moved through different financial channels to conceal its origin and facilitate withdrawals.
The case is being investigated by the Intelligence Fusion and Strategic Operations (IFSO) unit of Delhi Police. Investigators suspect that the accused used a network of financial intermediaries to move the proceeds of the alleged fraud, making it more difficult to trace the money and identify its ultimate beneficiaries.
Authorities have reportedly placed approximately ₹1.78 crore on hold as part of the recovery efforts.
149 Transactions Trigger Cyber Fraud Investigation
The investigation centres on an account from which ₹3.93 crore was allegedly siphoned through 149 unauthorised transactions. The disputed transactions and the associated first information report (FIR) date back to October 5, 2026.
Investigators are examining how access to the account was obtained, how the transactions were initiated and whether multiple individuals coordinated the movement of funds.
The seven arrests represent a significant development in the investigation, although the precise roles allegedly played by each accused will need to be established through further evidence and legal proceedings.
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Mule Accounts Allegedly Used to Move Stolen Money
A key focus of the investigation is the suspected use of mule accounts. These are bank accounts used to receive, transfer or withdraw money obtained through fraudulent activities.
Criminal networks may recruit account holders through fake job offers, commissions or other financial incentives. In other cases, individuals may knowingly allow their accounts to be used for illegal transactions.
By transferring money through several accounts, fraudsters can create a complicated transaction trail and make it harder for investigators to identify the original recipients.
In this case, police are examining whether mule accounts were used to distribute the allegedly stolen funds before they were converted into other forms of value.
Cryptocurrency and Hawala Channels Under Scrutiny
Investigators suspect that part of the money trail involved converting funds into Tether (USDT), a cryptocurrency designed to maintain a value linked to the US dollar.
Cryptocurrency can facilitate rapid transfers between digital wallets, including across borders. However, blockchain transactions can leave records that investigators may analyse to identify wallet movements and connections between transactions.
The suspected involvement of hawala channels adds another layer to the investigation. Hawala is an informal value-transfer system that operates through networks of intermediaries. When used to move illicit proceeds, such networks can complicate efforts to trace the movement of money across locations.
Police are examining the alleged connections between bank transfers, cryptocurrency conversions and hawala transactions. The complete route of the funds and the involvement of individual suspects remain matters for investigation.
₹1.78 Crore Put on Hold as Probe Continues
The reported placement of ₹1.78 crore on hold represents a substantial portion of the alleged ₹3.93 crore fraud. Investigators will need to establish the status of the remaining funds and determine whether additional money can be traced or recovered.
The case highlights the importance of coordinated financial investigations that combine banking records, digital evidence, cryptocurrency tracing and intelligence about suspected intermediaries.
What This Means For You
Never allow strangers to use your bank account to receive or transfer money, even if they promise a commission. Verify unexpected banking transactions, protect your account credentials and report unauthorised debits to your bank immediately.
The420 Insight
This case illustrates how cyber fraud investigations increasingly require tracing money across conventional banking systems, cryptocurrency networks and informal transfer channels. Arrests and frozen funds are important developments, but identifying the complete transaction trail and recovering victims’ money remain critical measures of investigative progress.
About the Author – Ananya Aradhya writes on cybercrime, fraud, scams, cybersecurity, digital safety, and emerging threats. Her work also covers major criminal cases, financial frauds, consumer scams, and stories that highlight risks affecting people in the real and digital world.
